Companies, Coleman Johnson here. Him. Maker Yang here, 6 present one. Absent that being commissioner cam discussion item number one resolution. 25 Dash 17. 25 resolution approving an administrative amendment to the budget or tax increment financing plan for the Osceola Park tax, increment financing, District housing district and approving a nature, a budget Amendment district 9 or 2. Henry, thank you for the next couple of items we have been briefed on them. Received. Reports. And so I'm going to over to man to see if there's anything to add for the items. Yep. So last year the hr
unanimously approve similar actions for 3 different plans provided technical changes that align expenditures to match the project use of funds, which then, you know, helps ensure accuracy in reporting that we do annually. We have Jenny Wolf here with some additional information and able to answer any questions that and you MAY have. Thank Ben will come to school. Thank you. Afternoon Johnson and Commissioners. John, you will with pd has mentioned by interim director McMahon. These next 2 items pertained to technical changes. 2 are adopted plans for housing tif districts and these tif districts recreated in 2002 2003, the first iem that had called out. As for the Osceola Park to district, it's located at 2.60 Self Osceola Avenue in
Ward. 2 and the creation of the hosing tif district resulted in the new construction of 87 senior rental housing units and the 8 reissued a pay. As you go note to the developer for the project. Pay as you go, obligations are limited obligations without any scheduled payments. And the revenues are first used to pay interest and then to retire principle. They train makes no representation to the developer that the pledged incremental be sufficient to pay principal and interest the tip plan budget was prepared and approved based on the projected tax increments to be generated in the tif district. The district expires in 2028. So just a few more years here, and we are projecting that we
will pay out more interest and what was budgeted when the district was established. The increase is $160,000. Many factors impact the amount of tax increment actually collected by the tray, including the taxable market value. Of the project and the applicable tax rate, the actual tax increment collections have not matched the projected tax. Increment collections projected tax occurrence. So we have prepared the attached. Second amended amendment to the tip plan to increase the interest payments and reduce the principal amount reimbursed. The Second Amendment does not increase the total estimated tax increment expenditures. The eatery's budget is similarly amended to align with them and it tips planned budget. I'll just say that a trade for tif plan budgets.
These are multi-year budget and they're acting on in place when the district is first established. The budget changes a technical changes and does not impact the housing project or the pledge tax increments solely amends a tree budget specific to the tif district to align with the proposed amended to plan budget. And that's what received. A couple just increase from folks. I think that are watching. And so I'm going to ask you to to simplify the in terms of a couple of things I think would be really helpful folks MAY be tuning in to understand this item and just why is the technical change? Is is there are the projections lower or higher than what we received. And also, if you could, just in simplistic terms for these these next to share the action of the body is taking. About a simplistic terms as you can get. Chair Johnson
commissioners. preface this comment. Wis just. We have an obligation, a page go note that we issued that requires us to send 90% of the tax and comments that we receive. The note Holder doesn't care if we call him principal or we call them interest. We have to send those tax increment. The fact that the interest has been paid out higher than what expected is because just of the timing of the tax increment. And the interest has to be paid first before we reduce principal. S yes, projected increment are lower than what we have collected, but it's not any impact on the ability for for the note to stay in place. We were required and our budget so that we can align with our actual spending. If we don't
amend our budget then we will overspend interest and that could be flagged by the state auditor for our tif district. Thank you so much for that. Just really helpful folks to the distinction were making a. going to. Cuncil PRESIDENT. Thank chair thank chair. Really appreciate you asking for the plain language version because I do think there's a lot of attention on tough right now. And I think this is an important example s just to make sure I also understand. There's no. More tax increment being allocated to this project than was originally. It's just that the amount of tax increment, 90% of the income meant that is going to the developer. More of it is going to have to go to interest than we thought because the district has underperformed and no none of
that money is. Going to other tif districts are, you we are not making up the shortfall in any way. It's just. Accounting change from saying that some of the more but it's going principal versus market is going to be interest. But the same cannot get your Johnson Commission acre. The language we include and I included in the board report and that is included in all of our page ago. No obligations is that this is a limited pledged to what we collect. We will send you what we collect. And if it if you end up not getting all that, you thought you would get for principle that there is no recourse, no other sources pledge to this obligation. And I think there's many factors of why the tax increment haven't come in as originally expected. Just I would say I looked at
projections and mostly it's the market value. The market value just never obtained what was expected. And then one of impacts of late. It's not really the main driver, but impact of late is the change to 4 d. So that was a legislative change that we had no control over and that reduced our checks increments for a project. That's 100% affordable by 60%. So I feel like we might have more these coming with that change. But we keep an eye our budgets and what paying out so that we can align the 2. Continue to follow up on that. Thanks, chair. In the case where a tax increment district Underperforms. That sounds bad. But what it really means is that we got the development while putting. Less public subsidy into it
and Moore was found is falling on the private developer to pay for. I'm sure. Johnson commissioner maker. To be underperforming. It's a projection. It was done 20 years ago. And it it's based on a lot of assumptions. So what the project will be valued at with the tax rates will be and whether the collections will be timely because time time matters as well of collections. If my district, for example, they are allowed to petition their and if they petition their value and the county withholds tax increment from we want to have that to The interest on that amount will continue to accrue. So it it's there's many factors involved. But no, we're not paying anything more out than we're obligated to
pay out. There's there's not any additional mechanism that word asking for here. We're just asking to continue to align our budget with what the no obligations to do, which is to continue to send 90% of the pledge to come hurt. Yes, and I think to very piece of that, it's like not that that's less something going into it. The more that it's the subsidy that but you're all going to do is going towards interesting set up. Well, mean, I guess for another make sure understand building costs $100 to build and we say that over time, you know, we will dedicate all of the tax increment to that mention of the tax increment to that building and we expect that that tax increment will be $50, right? So so $50 and to fund $50 from the private side. The building gets built and the taxable value isn't high as we thought. So
instead, instead of $50 coming in in tax increment. $20 comes right? Then $20 coming in from tax income in $80 is being covered by the private side because we're not on the hook for the shortfall. Right? I guess. And trying to save like underperforming sounds bad. But what actually happened is that the building got built. We're putting. Allocating the tax increment. We said we would to it, but that number is lower and we thought it would be and the developer has to make up the gap. And so in some ways that that we want underperforming overperforming. But I think it's important people know that that's in some ways. That means that there's less public support of this building and more of it as being fronted being supported by the private side. And we still got the
benefit of the building in the Affordable housing. And when district closes all of the additional that's what market value that it has that generated. Johnson Commission acre off. Maybe I'll summarize it in this manner. Mean there are only know like I said 3 years 2028. Is the final year. Had this district performed as projected. We would have paid out all 90% at the end of 2028. And there would be no principal left do on that note right now. We're going to pay out. Still 90% of what we collected, but it will not retire all the principal because we've had to pay more of it out in interest and the developer will have to cover that. Yes, yes, they if they have along with the bank, still outstanding, they have to pay the bank yeah, I think that, you know, that's really helpful.
Just have that conversation, especially because it applies to these 2. My question that I did have plus around just the do we typically do these numbers like and the 20 year mark, some of for both this our next item, you know, being that they originally done in 2020 202 2003. Just for my own awareness do when we go back their numbers and provide just administer amendments like this to the typically happen when we're getting ready to be close to closing out district, Joe Johnson commissioners. I evaluate where we are on our spending budget. Every year file reports with the state auditor. So I'd keep an attack on how much each budget is performing at with actual budget to actuals. And I know if appears to be, you know, getting closer to the actual
Ys and then look at. Why and then evaluate and project through the end of the tif district. And that's what I've done on these 2 projected. Through the end of the tif district to make sure that the amendment covers everything went to expect to have happen by the end. Thank Any other questions from any of the commissioners and and the same. Okay. Seeing none. Thank you as well. I will take a motion from Commissioner Tucker to prove. All those favor. Posts. 6 in favor. None opposed. The resolution is adopted. Item. Number 2 resolution. 25 Dash 17. 26 resolution approving an administrative amendment to the budget for tax increment financing, plan for the housing tax, increment financing, district number 3, Shepard, Davern Senior rental
housing district and approving a jury budget Amendment district. 15 Ward, 3. Thank you so much. And director man and this will this mirrors the previous requests and nature. But just could you just click summarize for? Some of the main changes here. I know you mentioned the that increase from the previous amendment. So can do that here, too, as well. We appreciate it. Sure. Chair Johnson commissioners, this is similar. Was a senior Housing project 120 units created. The addresses 17 45 Graham Avenue in Ward. 3 and the increase to interest budget is 160,000 in this case. Yes, so thank you for for questions for the things and to be clarifying the same. Okay, seeing none. I'll take a motion from restrictions to
approve. Well, all of us. 6 in favor. None opposed. The resolution is adopted. Item. Number 3 resolution. 25 Dash 17. 49 approving and authorizing the cdbg loan extension for Ramsey Hill Apartments, District 8 Ward, one. received cent for staff report that was an introduction terms and last. Last housing redevelopment Authority meeting. Handed over stricter minute. There's anything in particular that you want to say about This item. Otherwise, this is the action that's in front of us today. Thank you, As a reminder, this item extensive Cdbg long term through the end of 2031 and also extensive affordability. Terms for that period as well. Staff is available. If there's any additional questions you have that have come come up since
last week's presentation. Okay. Seeing none. I'll take a motion from commissioner going to prove any discussion. Well, those all those in favor, I. Any of this. 6 in favor. None oppose. A resolution is adopted. Staff report staff report. 25 Dash 2, 4, 4, introduction to amendment 2 temporary to spending plan authority. So back this item actually is coming before us introduction. It will vary from our typical introduction to actions of that because we'll come back before you on DECEMBER. 3rd. I share that now because believe it or not, we are next week is mean, if NOVEMBER and then we'll be heading into 2 approving the budget the 3rd as well. So they'll be quite a bit to get through. This is one of them that will come
before us. At that time for that particular meeting, face charges will be chairing the meeting and that will be when will actually vote on the spending plan changes. But this is just an introduction outline what those are for so handles back back over to Director McMahon. And I believe this, Wolf is joining us yet again. So as our to extraordinary, thank you, commissioners and thank you for no to The city council hold a public hearing on item in the tree will take action on this item on DECEMBER. 3rd, this items response to state law changes this past legislative session that extended deadline for using transferred increment as well as authorizes the use of interest earned on the transfer income. It. And we have our route gentle here more information. Welcome back to school. Thank Good afternoon. Chair
Johnson and commissioners. So as you both introduced action in 3 weeks and this to address changes made at the Legislature this past session here for our temporary tariff authority. So I do have a slight hear about the purpose regarding the legislative. Amendments to extend the spending and to authorize the use of interest earnings. They treat board is required to amend or spending plan under the temporary tif Act to utilize these legislative amendments, the interest earnings must be used within the same limitations under the original temporary act, which requires private development. That includes substantial rehabilitation. Our new construction of buildings creates a retains jobs in the state, including construction jobs and commences construction by the end of
DECEMBER. 31 2026 as amended and would not have commenced by the state without the assistance. I will quickly cover the background cause. I know many of you were not here in 2022. 1. Presented with the opportunity to adopt a spending plan under the temporary tif authority. So that was done by the 2021 legislature and they authorized if authorities to expand on obligated tax increments to advance private development. And in that case, the construction had to start by the end of this year and the tax increments needed to be transferred out of each tif district into a separate spending plan account by the end of 2022. The adapted
spending plan identified 6 proposed categories for the spending authority as follows installation of required infrastructure serving a specific area on the West Side Flats, private development of a tree on sites. Private development of under utilized privately oned sites, private development of commercial properties for the purpose of preventing displacement of emerging and sall businesses. Private development up all types of housing production and private facilities serving unsheltered populations and private development demonstrating substantial job impacts as well as any other private development that meets the statutory requirement. And for which the h or a document its findings at the time of approval. So tree transferred 27 million 549 thousand and
$47 to the spending plan account by DECEMBER 31st. 2022. In 2022. Through 2024, they tree board authorized 10 projects to spend the full amount that we transferred, these projects that are shown in the table here with the dollar amount authorized and I will highlight each one the next few slights. So one project was approved include to include the installation of required infrastructure serving a specific area on the West Side flats to advance new housing. The photos showing here are the construction of a new sewer lift station as well as 2 housing projects that were able to advance and commence construction and complete construction because of the temporary to funding.
This is the Essex House with 221 units and harbor line with 63 affordable units. 2 projects included private development of underutilized privately owned sites. The photos here include United Village construction of buildings, which include 2 new restaurants, as well as a new 80,000 Square foot office and 160 room hotel and the construction of the new Xcel Energy Service Center at the height that was able to advance and commence construction because of the temporary to funding for the required infrastructure. 2 projects included private development of uderutilized privately on site and commercial properties for the purpose of preventing displacement of emerging and small businesses. The photos here include Little Africa Plaza on Snelling Avenue, which includes a new grocery
store in new offices for 80 s as well as the Molly Center on Front Avenue, which includes a gym and a health-focused developed by Tyrone, Minor honor of te 5th lab, which business was displaced from their prior location. Last, but not least we had 5 projects that included private development of all types of housing production and private facilities serving unsheltered populations. The list is here with listening house with the new daytime drop-in service center serving the unsheltered habitat for humanity's phase one development at the height, which included 73 ownership units, which the first unit is about to Next week. I think. I the conversion of the landmark
towers office portion resulting in 187 new housing units 92 East 7th Street project developed by ppl with 60 units of affordable rental housing and 6.52. Sherborne which included substantial rehabilitation of a tree in property to preserve 6 units of 30%. And my rental housing. The photos are here showing on show in on the following photo from the Habitat for Humanity Development. And though the scene House project. And for those 6.52 Sherborne a 92 e 7 and the land towers. So tat's background on the spending plan that we've already done. Are there any questions on that? Before I go on to the amendment? So the spending plan will be amended and restated to identify the
specific approved expenditures. Those that I just reviewed those 10 projects authorize the expenditure of interest earnings on funds held in the spending plan account for authorize uses, which includes the same spending categories that identified as well, extend the deadline for spending funds, including the transfer tax increments and interest there on until DECEMBER 31st. 2026 and will increase the total spending to 29 Million. 47, which is an increase of one and a half million, which results from the interest earnings. This amount is an meant and the tree will be limited to spend the actual interest earned. The required approvals for the amended and restated spending plan includes action of a tree
board and city Council has has mentioned before with a public hearing at the City Council. And these actions are planned for DECEMBER. 3rd. And if and and the actions must occur in DECEMBER, if we want to extend the spending deadline and authorize interest earnings for spending. I'm just a quick note. The approvals on DECEMBER 3rd will not obligate any of the interest earnings and future action of a tree board will be required to advance any new project. The interest earnings are tax increments, the amended and restated spending plan provides that a tree, the opportunity to utilize the additional funding. Any interest earnings remaining in our spending plan account on DECEMBER. 31 2026. We'll be transferred back to one or more tough districts. And thank you look, we do have a
question from Thanks, Just going back to the previous slide action as well. You mentioned that we would be increasing the total spending to 29 million, which is an increase of 1.5 million. How much of that has already been spent? 27 Million 5. 47 is what's been obligated and contractually to contractually. They spent we haven't sent all of that out to door yet. But it's all obligated under contract. Okay. So that really, though. The extension of the deadline for year only gives us one and a half million more and the ability to use interest. Although we're talking about this yet. You're trying commission acre. It's it's only it's only for for projects. Yes, but some of the projects that we have approved might really appreciate a little more time to to spend the dollars. The commenced ready and they
they're working on him. But they're just having trouble getting the drive request are getting the money out the door by the of DECEMBER. Just because of timing and all of that. But they're all going on. So so, yes, that it would be new of the interest earnings up to one and a half million. Thank you. Thank you, commissioner. And I appreciate the clarity is. Well, think that just kind of going into the fire seems so much of this doesn't this. was already kind of a But then the remaining them out Dewey. And guess to that pain, do we anticipate any sort of unaccounted for in the next year or so? In addition to that 1.5 million dollars, a 1.5 million party.
So the chair Johnson, you commissioners that is our upper boundary. I was advised this probably as our one shot chance at at a Monday net. So I I asked if I could wait, whoa, you know, few months in the next year and see where we are. It was suggested that we go ahead and just budget high for this purpose. to clarify, we would, you know, just so for everybody's awareness, we would have to make an action on this before the end of the year because they are. Originally set right now to not be line with what the state changes, which would be to expire at the end of the year. So we didn't do that. We wouldn't be able to crry into next yeafor that year extension without this body acting. Chair Johnson, correct? It. And that's we have additional slides. Or that was your last one. You
know, that was Additional questions on this item. If commissioner, thank and thank you so much. Had a chance to talk to the pd steppens give a briefing of As you know, there's a lot of noise right around just like what it is and what isn't. So I do appreciate. refresher just. Contains kind. The questions I had and the last meeting particularly around you how is it like it where it's like the clear indicator because of like our see my. Where the pool of money first, particularly of like on different districts, how it can be transferred out. Remember last time you mention that even though the project is to completion that hit is
still open and can be used. Additional affordable housing projects. I guess my question is, is like there's not get clarity around how see like, like when pool is, I guess when the money is poled doesn't feel right because I feel like we're able to see like the source, you know, of everything with this one's kind of seems like it's like a cloud, you funds. So you can speak to just like how McAuliffe as pd, how that sourcing of funds the pulling of money. And I know this kind kid I trying get Chair Johnson Commissioner Bowie opt for first All-Star was just say this. just gave was on temporary tough authority. It is not something that is always available. It was it was an ability to pool on obligated tax increment into a single
spending plan account. And then we had to we were able to then spend from that account. That is not the typical pulling that we've been speaking about about affordable housing. So when we pull from a tax increment district, the fun stay in district and we identify them as available for affordable housing and then what happens is when we have projects that are looking for funding, we look to see how much do we have from each tif district and then we pull that for the project. But it stays in that tif district. So that tif district cash balance has dollars. They don't. They don't get transferred and they don't get told they just 8 they get pulled to spend on a project, but not they don't leave the Tipp District
account. This just temporary authority was special that that and it required us to move the money out of the tif districts. But that's not typical. Thank you. I was the sum it up is kind of like to districts are like credit cards, right? And what you have like limits your limits increase, you have more access you can pull from. That different accounts. Yeah, no, that's a good description them trying come up with it. You know, analogies that just makes sense to Johnson commissioned Lee. I'll just say that our policy and practice has been to maximize pulling for affordable housing to the greatest extent that we can with all of our tif districts or always keeping an eye. What pulling abilities. We have. And that's, you know, we have
our internal resource team within pd and that's where we kind of keep track of over the dollars are. And I think the presentation I gave last fall, I gave a highlight of how money we were. We had pooled and right now I believe we have about 5 Million. And that's pulled for affordable housing for decisions made by this body that that money doesn't go anywhere until this body approves. It. Any other questions from commissioners on this item was be back for a public hearing on DECEMBER. 3d with the action at that time. Before we adjourn today, I just wanted to take the time to share wth my colleagues some of the information I'm sure to me today and also to thank Director in and his team for their work, sending the emergency rental assistance and eviction prevention program. We are open for
applications as of today, which is exciting. And as a reminder for people. Noticing it, you know, this was a program that was really established to try and to assist low-income renter households in Saint Paul from having too facing eviction on their record. We know the implication, the implications of that and this allows for that 14 day intent. Conviction noticed just suffice in order to qualify for additional funding this is something that I'm really excited about. Each household can qualify for up to 2500 to cover their late rent and associated fees. As the council member who and as the chair. But as the council member whose ward has 5, 0, 6, and you've heard me say multiple times that it has some of the highest eviction rates in the county. And as we're heading into, but will soon be winter. My I to me,
the winters in DECEMBER fields like winters here, sometimes. In NOVEMBER and comes early. We have real opportunity, I think here at the city too in and disrupt the continued impact of folks going into the pipeline in the beginning by also being able to invest in connection prevention work here. So it's been a long time If you asked me leave, there's been a lot of work that has went through it. But we do have an open application process from the website. Same poll that Slash chair for its last year. E and people are able to reach out at this time. So I'll be sure to that out to commissioners, to say you have that. But overall, application will be pressing where they come sharing with many partners will be really important as well if you hear of anything. I just know that
some of us have received direct emails from folks that have. Been looking for this assistance. And so as a reminder, invested a million dollars this year and really working to continue to address that, Rick, that resource into next year as an eligible use local affordable housing To really, really excited to see that that is up back here at the city because we have to talk about housing all the full spectrum, including keeping people in their house once they have it. And so that's just a minute. I was really excited about and couldn't let go without telling you that you have like fires for it. So we'll be able to share that with you. Multiple organizations have been also shared information with by the wonderful pd team in tv staff that have them work working. Is that the
substance the beginning of the year? As you know, we've been working really hard to get that together. Despite all of the things that this year has thrown, So just to be able to see that the program is still watching in lieu you know, the cyberattack in love, all the things that we have received in order to try and get it just in time to people, people and and their homes for additional time peers during some of the coldest months, the holiday season and all the times we do not want to have to do with having an eviction your record and we know the bears of that can hold. It's citywide. There are restrictions income, but it is not related to a specific geography. So they live in city. That's something that any of us can refer people to a new voice. Just wanted to share have have been waiting. So I'm really excited about
that. And I think that in many ways. look forward to partnering with staff to getting people to through that process as possible. And if you have any additional questions not to tell staff, but we have a hasn't. Director director Go free to reach out. If you have any additional questions or you need the fire said to you. With that. Happy to be back time. You're injured.